Managing cashflow for small business can be a real juggling act. Cashflow is one of the most common problems faced by most small businesses.

1. Managing Cashflow
for Small Business

2. Any business owner will tell you that managing
business cashflow can be a real juggling act. Cashflow is
one of the most common problems that cause business
owners to lose sleep. Gaining control of your small
business’ cashflow will go a long way to improving your
peace of mind and reducing stress.
So how Can a Business Improve its Cashflow?

3. Identify
Identifying certain triggers in particular sales and
payments will make a significant difference to cashflow
management. Analysing outgoing payments and noting
when they regularly occur will go a long way to ensure
strong cashflow. Some of the key areas to consider are:

4. • Payroll for staff
• Supplier payment terms and conditions
• Australian Tax Office
• Utilities
• Finance including bank fees and loans
• Rent
• Payment to suppliers
• Customer payments including refund policies
There are number of business costs that must be accounted
for to help create better cashflow management for your
small business. Becoming aware of business costs and when
they are due takes us to the next step…

5. Awareness
Being aware of every cost to the business goes a long
way to helping solve cashflow issues. Knowing the
impact of these costs and outgoings will further help
understand and improve cashflow management for
your business over the course of a month or quarter.

6. Outgoings that need to be paid weekly, fortnightly,
monthly or quarterly can be prioritised or delayed
according to payment terms and conditions to improve
cashflow. Minimising the incurrence of late fees or
interest costs is a priority. Obviously, not meeting terms
or paying suppliers late will result in interest payments
or penalties being applied – all of which are
detrimental to positive cashflow. Being aware of
supplier’s terms and conditions and ensuring your
organisation’s terms and conditions are robust is critical
to business continuity.

7. Along with these cashflow areas, there are other key
triggers including:
• Staff payments, especially with casual and full time
workers or during busy trading periods
• Finance costs especially with large payments for
equipment
• Outstanding debtors and overdue invoices – Coming
to terms with debtors to create agreements can
make paying off invoices quicker and easier
• Running accounts receivable reports

8. Chasing customers for payments adds to the stress
when you have expenses to pay. Implementing
invoicing systems that are fast, on-time, and
automatically follow-up outstanding invoices helps
keeps cash flowing.

9. Tailored systems
Cloud Accounting and applications can assist
businesses large and small with their cashflow
management. Cloud-based accounting solutions
forecast business income and costs better and create a
system to trigger key information that helps assess
major business decisions such as major purchases or
use of finance that impact on cashflow.

10. New cloud accounting software options such
as Xero and QuickBooks Online are powerful
applications that automate many business tasks and
generate reports quickly, helping you understand your
position better. Being securely cloud-based, these
cutting-edge systems allow you to access information
from anywhere on any device. Accessing real-time
financial data gives businesses greater control and
allows better business decisions to be made.
If your looking for more information on how to best
manage your cashflow check out our blog around 5 tips
to improve your cashflow or speak to one of our
experts today.